Chana under fresh buying; Support seen at 4450

Chana market is under fresh buying as market has witnessed gain in open interest by 9.4% to settled at  while prices up 11 rupees.

Now NCDEX Chana is getting support at 4450 and below same could see a test of 4434 level, And resistance is now likely to be seen at 4487, a move above could see prices testing 4508.

Chana on NCDEX settled up by 0.25% at 4465 on reports of diminishing stocks with the traders amid lower imports and high consumption. India has issued a combined 6,50,000 tonne import quota for pulses for the fiscal year to March 2020, a government order said, allowing overseas purchases of protein-rich pulse varieties that are a staple of Indian cuisine.

Two straight years of drought pushed up pulse prices in 2015 and forced New Delhi to allow duty-free imports. But record imports of 6.6 million tonnes in the 2016-17 fiscal year led to a crash in local prices. As part of its efforts to curb imports, the government started fixing import quotas in 2018.

According to the second advance estimates released by the government, chana production estimate for 2018-19 is 10.32 million MT which is 8.10 percent lower than the 4 th advance estimate of 11.23 million MT of 2017-18.

However, the market participants believe production to be in the range of 7 to 8 million MT due to lower chana sowing acreage this year. As per latest report released by NAFED, as on 26th March 34.5 thousand MT has been procured by NAFED in Talangana at the MSP rate of Rs 4620 per quintal. US chickpea production estimate for 2018-19 is estimated at 5.77 lakh tonnes which 81 per cent higher than last year estimate of 3.20 lakh tonnes.

Trading Ideas:
–Chana trading range for the day is 4434-4508.
–Chana prices gained on reports of diminishing stocks with the traders amid lower imports and high consumption.
–India has issued a combined 6,50,000 tonne import quota for pulses for the fiscal year to March 2020, a government order said.
–According to the second advance estimates released by the government, chana production estimate for 2018-19 is 10.32 million MT.
–In Delhi spot market, chana dropped  by 38.9 Rupees to end at 4348 Rupees per 100 kgs.

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